San Francisco Real Estate Market Update: 2018 in Review

January 18, 2019

For the first time in seven years, the trend line shifted from up to down for single family home sold prices in San Francisco. They eked out a 0.5% increase* for the year.

Likewise, median condo sold prices peaked in March and ended the year with anannual appreciation of 3.6%.

In retrospect, 2018 was probably the start of the leveling off of the very frothy San Francisco housing market. This is a natural part of the real estate cycle, as the affordability gap widens between rising prices and wage gains. Real estate is a highly cyclical segment of the economy and a seven year run of rising prices is a very long up-leg on that cycle.

Because inventory remains critically low, it is still a sellers market. Expect 2019 to remain highly competitive for buyers, but probably with less exuberant overbid levels.